Invesco FTSE All Share ESG Climate UCITS ETF Dist

Issuer: Invesco

Asset Class: Equity

TER: 20bps

Trading Currency: GBX

Pays Income: False

Listing Date: 15 Mar 2021

Ticker: FASE

ISIN: IE00BN7J5Z03

This investment fund offers a core allocation to the broad UK equity market while integrating crucial environmental, social, and governance (ESG) principles. It is designed to track a benchmark that adjusts a traditional, well-known UK stock index to reflect climate and sustainability objectives. The strategy involves a 'tilting' mechanism that increases exposure to companies demonstrating strong ESG practices and reduces allocations to those with weaker profiles. Furthermore, it applies specific exclusions, removing companies with significant business involvement in controversial sectors such as tobacco, controversial weapons, thermal coal, and oil sands, ensuring the portfolio aligns with responsible investment values.

The fund’s methodology has a dual focus on both comprehensive ESG criteria and specific climate metrics. It aims to significantly reduce the portfolio's carbon emissions intensity and fossil fuel reserves exposure relative to the parent universe. Simultaneously, it seeks to achieve a tangible improvement in the overall ESG score. This approach provides a solution for investors who want to participate in the growth of the UK's leading companies but also wish to mitigate climate-related risks and support businesses that are better prepared for the transition to a low-carbon economy. This strategy offers a cost-effective and transparent way to achieve these combined financial and sustainable goals.

This product is particularly suitable for investors seeking a foundational UK equity holding that is aligned with sustainable principles. It can serve as a central component in a diversified portfolio for those who believe that strong ESG management contributes to long-term corporate resilience and financial performance. By providing access to hundreds of UK-listed companies across large, mid, and small market capitalisations, all filtered through a rigorous sustainability framework, it caters to the modern investor's needs. The fund’s distributing share class, which pays out income semi-annually, may also appeal to those looking for a regular income stream from their investments.